Head-To-Head Review: Emergent Capital (IFT) vs. Torchmark Corporation (TMK)

Emergent Capital (NYSE: IFT) and Torchmark Corporation (NYSE:TMK) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Emergent Capital and Torchmark Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emergent Capital 0 0 0 0 N/A
Torchmark Corporation 4 3 0 0 1.43

Torchmark Corporation has a consensus target price of $70.40, indicating a potential downside of 9.49%. Given Torchmark Corporation’s higher probable upside, analysts plainly believe Torchmark Corporation is more favorable than Emergent Capital.

Dividends

Torchmark Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Emergent Capital does not pay a dividend. Torchmark Corporation pays out 12.9% of its earnings in the form of a dividend. Emergent Capital has raised its dividend for 7 consecutive years.

Insider and Institutional Ownership

71.9% of Torchmark Corporation shares are owned by institutional investors. 3.8% of Torchmark Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Emergent Capital and Torchmark Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Emergent Capital N/A N/A N/A N/A N/A
Torchmark Corporation $4.02 billion 2.25 $864.53 million $4.66 16.69

Torchmark Corporation has higher revenue and earnings than Emergent Capital.

Profitability

This table compares Emergent Capital and Torchmark Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emergent Capital -187.06% -15.14% -4.53%
Torchmark Corporation 13.96% 11.55% 2.55%

Summary

Torchmark Corporation beats Emergent Capital on 8 of the 11 factors compared between the two stocks.

Emergent Capital Company Profile

Emergent Capital, Inc., formerly Imperial Holdings, Inc., is a specialty finance company that invests in asset classes, primarily life settlements. The Company, through its subsidiary companies, owns a portfolio of approximately 630 life insurance policies (life settlements). The Company purchases individual policies and portfolios of life insurance policies and manages those assets based on actuarial and market data. The Company provides customized liquidity solutions to owners of illiquid financial assets in two markets, which include life finance and structured settlements. The Company focuses on lending to outright purchases of portfolios, to tertiary trades, as well as individual secondary market purchases. The Company invests in short and long-term life settlement investments.

Torchmark Corporation Company Profile

Torchmark Corporation (Torchmark) is an insurance holding company. The Company, through its subsidiaries, provides a range of life and health insurance products and annuities to a base of customers. The Company’s segments include life insurance, health insurance, annuities and investment. The life insurance segment includes traditional and interest-sensitive whole life insurance as well as term life insurance. The Health insurance products are guaranteed-renewable and include Medicare Supplement, critical illness, accident and limited-benefit supplemental hospital and surgical coverage’s. Annuities include fixed-benefit contracts. The Company markets its insurance products through various distribution channels, each of which sells the products of its insurance segments. Its subsidiaries include American Income Life Insurance Company (American Income) and Liberty National Life Insurance Company (Liberty National).

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